Quick Scan: Trade Simulator Version 5.0 by John Sweeney
Wouldn’t it be wonderful if there were
perfect rationality in the markets? We
could all invest our extra cash and focus
on our rosy future without worries.
However, since what the securities
people sell us are all subject to the
uncertainties that plague human
endeavor, we must deal with a certain amount of randomness. And uncertainty
inspires a certain amount of superstitious
belief. We’d like to call it the psychology
of the market, but since it cannot be
proven, it’s also inductive and heuristic
(using rules of thumb).